TaxTMI 
TaxTMI 
2025 (3) TMI 1557
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.... Income Tax Act, 1961 (in short 'the Act') for the A.Y. 2012-23. 2. In the instant case, the Assessee had declared its total income of Rs. 70,36,750/- by filing his return of income on dated 30.07.2022 for the assessment year under consideration, claiming TDS of Rs. 18,10,000/-. The return filed by the Assessee was processed by the CPC vide intimation/order dated 13.01.2023 u/s 143(1) of the Act, whereby the credit of TDS was allowed to the extent of Rs. 60,000/- only, as against the TDS claimed by the Assessee to the tune of Rs. 18,10,000/-. 3. The Assessee, being aggrieved, challenged the said intimation/order dated 13.01.2023 of the CPC for not allowing the complete TDS claimed to the tune of Rs. 18,10,000/....
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....y to the tune of Rs. 57,50,000/- on which the TDS was deducted to the tune of Rs. 17,50,000/- but the employer failed to deposit the same in the Government account and therefore liability cannot be fastened on the Assessee as the Assessee is entitled to get the benefit of the TDS deducted by his employer. 6.1 We observe that the Hon'ble Co-ordinate Bench of the Tribunal in the case of Mr. Aditya Deepak Nasta (ITA nos. 3293/M/2024 & ors decided on 20.09.2024) has also dealt with identical issue/situation, wherein though the employer had deducted the TDS but not deposited in the Government account and therefore benefit of TDS was denied to the Assessee. The Hon'ble Co-ordinate Bench while analyzing the relevant provisions of law ....
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....return of income, and the person furnishes a certificate to this effect from an accountant in such form as may be prescribed: Provided further that no penalty shall be charged under section 221 from such person, unless the Assessing Officer is satisfied that such person, without good and sufficient reasons, has failed to deduct and pay such tax. (1A) Without prejudice to the provisions of subsection (1), if any such person, principal officer or company as is referred to in that sub-section does not deduct the whole or any part of the tax or after deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest,- (i) at one per cent for every month or part of a month ....
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....n (1) deeming a person to be an assessee in default for failure to deduct the whole or any part of the tax from a person resident in India, at any time after the expiry of seven years from the end of the financial year in which payment is made or credit is given or two years from the end of the financial year in which the correction statement is delivered under the proviso to sub-section (3) of section 200, whichever is later. (4) The provisions of sub-clause (ii) of sub-section (3) of section 153 and of Explanation 1 to section 153 shall, so far as may, apply to the time limit prescribed in sub-section (3). Explanation.-For the purposes of this section, the expression "accountant" shall have the meaning assigned to it in ....
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.... such tax but not the other person like the Assessee in this case. Further, where the tax is deductable at source under the provisions of chapter XVII of the Act, then the Assessee shall not be called upon to pay the tax himself to the extent to which tax has been deducted from that income. 6.5 Coming to the reason given by the Ld. Addl/Joint Commissioner that the Assessee failed to provide even Form-16 from the employer and therefore there is no fault of the CPC in not granting the TDS. We observe that the Hon'ble Jurisdictional High Court in the case of Yashpal Sahni vs. ACIT (2007) 293 ITR 539 (Bom) decided on July 18, 2007 also considered the non-issuing Form No. 16 and not depositing the TDS in the Government account. The....
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....ths and corresponding bank entries depicting credit of actual salary amounts credited/received, demonstrated the genuineness of its case. It was a fault of the employer, as the employer though deducted the TDS but not deposited the same in the Government account, which resulted into mismatch in the Form-26AS and therefore the employer can only be considered as "deemed to be in default" in respect of such TDS deducted but not the Assessee, because as per section 205 of the Act, the Assessee shall not be called upon to pay the tax himself to the extent to which tax has been deducted from his income. 5.7 On the aforesaid analyzations, we are of the considered view that the Assessee cannot be treated as Assessee in default as per the p....